Commission Regulation (EC) No 2081/2000 of 29 September 2000 providing for the continued application of safeguard measures for imports from the overseas countries and territories of sugar sector products with EC/OCT cumulation of origin
Date: 2000-09-29
Institutions: European Commission
Subjects: European Communities, association agreement (EU), import policy, originating product, overseas countries and territories, sugar product

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Official Journal of the European Communities

30.9.2000

COMMISSION REGULATION (EC) No 2081/2000

of 29 September 2000

providing for the continued application of safeguard measures for imports from the overseas
countries and territories of sugar sector products with EC/OCT cumulation of origin

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Decision 91/482/EEC of 25 July
1991 on the association of the overseas countries and terri-
tories with the European Economic Community (1), as last
amended by Decision 2000/169/EC (2), hereafter referred to as
the ‘OCT Decision’, and in particular Article 109 thereof,

Following consultation with the Committee set up under
Article 1(2) of Annex IV to that Decision,

Whereas:

(1)

(2)

(3)

(4)

The Commission has noted that imports of sugar (CN
code 1701) and of mixtures of sugar and cocoa falling
within CN codes 1806 10 30 and 1806 10 90 origin-
ating in the overseas countries and territories (the OCT)
increased greatly between 1997 and 1999, particulary
those imports with EC-OCT cumulation of origin, which
increased from zero tonnes in 1996 to more than
53 000 tonnes in 1999. Such products are imported
into the Community free of
import duties and are
admitted without quantity limits in accordance with
Article 101(1) of the OCT Decision.

By Decision of 25 February 2000 extending Decision
91/482/EEC on the association of the overseas countries
and territories with the European Economic Community,
the Council extended the period of application of the
OCT Decision until 28 February 2001.

Commission Regulation (EC) No 465/2000 of 29
February 2000 introducing safeguard measures
for
imports from the overseas countries and territories of
sugar sector products with EC/OCT (3) cumulation of
origin for the products referred to in recital 1 to a
maximum of 3 340 tonnes of sugar for the the period 1
March to 30 September 2000.

In the past few years difficulties have arisen on the
Community sugar market, a market in surplus. Sugar
consumption is constant at some 12,8 million tonnes
per year, while production under quota is around 14,3
million tonnes per year. Any imports of sugar into the
Community therefore involve a corresponding quantity
of Community sugar which cannot be sold on that

market having to be exported. Refunds for that sugar,
within the limit of certain quotas are charged to the
(currently at around EUR 520/
Community budget
tonne). However, exports with refund are limited in
volume by the Agreement on Agriculture concluded as
part of the Uruguay round (4) and have been reduced
from 1 555 600 tonnes for the 1995/96 marketing year
to 1 273 500 tonnes for the 2000/01 marketing year.

The operation of the COM in sugar may be greatly
destabilised by these difficulties. For
the 2000/01
the Commission decided to reduce
marketing year,
Community producers quotas by
some 500 000
tonnes (5). Any further import of sugar or products with
a high sugar content from the OCT will mean a greater
reduction in the quota for Community producers and a
greater guaranteed income loss for them.

As a result of these continuing difficulties, there is a risk
that a sector of Community activity will deteriorate. The
Commission therefore decided on 19 September 2000
to continue to apply the safeguard clause provided for in
Article 109 of the OCT Decision in respect of imports of
sugar sector products from the OCT with EC-OCT
cumulation of origin.

Article 100 of the OCT Decision states that its object is
to promote trade between the overseas countries and
territories and the Community, taking account of their
respective levels of development.
In accordance with
Article 109(2) of the OCT Decision, priority must be
given to such measures as would least disturb the func-
tioning of the association and the Community. More-
over, those measures must not exceed the limits of what
is strictly necessary to remedy the difficulties that have
arisen.

To that end, EC/OCT cumulation of origin for products
falling within CN codes 1701, 1806 10 30 and
1806 10 90 should be restricted to a maximum of
4 848 tonnes of sugar for the period 1 October 2000 to
28 February 2001, that figure representing the sum of
the highest annual volumes of imports of the products
in question recorded in the three years preceding 1999,
In
the year in which imports recorded a sharp rise.
determining the quantities of sugar to be taken into

(5)

(6)

(7)

(8)

(1) OJ L 263, 19.9.1991, p. 1.
(2) OJ L 55, 29.2.2000, p. 67.
(3) OJ L 56, 1.3.2000, p. 39.

(4) OJ L 336, 23.12.1994, p. 22.
(5) Article 26(5) of Council Regulation (EC) No 2038/1999 of 13
September 1999 or the common organisation of the markets in the
sugar sector (OJ L 252, 25.9.1999, p. 1).

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consideration, the Commission takes note of the posi-
tion adopted by the President of the Court of First
Instance in his rulings of 12 July and 8 August 2000 in
cases T-94/00R, T-110/00R and T-159/00R (1), without,
however, recognising it as justified. Consequently,
in
order to avoid unnecessary procedures and solely for the
purposes of adopting these safeguard measures,
the
Commission, for sugar falling within CN code 1701 and
for 1997, bases itself on the figure of 10 372,2 tonnes
imports of sugar from the OCT with
for the total
as
EC-OCT and ACP-OCT cumulation of origin,
recorded by Eurostat.

Safeguard measures should also be introduced for prod-
ucts
falling within CN codes 1806 10 30 and
1806 10 90 in view of their high sugar content and the
similar prejudicial effects on the COM in sugar as with
unprocessed sugar. Those measures should ensure that
the quantities of sugar-based products imported from
the OCT do not exceed a volume that could disturb the
COM in sugar, while at the same time guaranteeing
them a commercial outlet.

The Commission reserves the right to propose to the
Council, as part of a review of the OCT Decision, that
the rules allowing cumulation be deleted or that a
quantity restriction at
the lowest possible level be
applied, taking account of the actual financial benfits to
the OCT, the objectives of the common agricultural
policy and budgetary restraints.

The specific checks on imported goods covered by the
measures laid down by this Regulation and the checks
applicable in trade with third countries established under
the Community rules on release for free circulation and
customs value laid down by Council Regulation (EEC)
No 2913/92 of 12 October 1992 establishing the
Community Customs Code (2), as last amended by Regu-
lation (EC) No 955/1999 of the European Parliament
and of the Council (3), should ensure compliance with
the provisions laid down by this Regulation.

In order to guarantee proper management, avoid specu-
lation and permit effective controls, the rules for the
lodging of licence applications should be specified. They
must include proof that the applicant normally carries
on business in the sugar sector, a declaration that no
other applications have been lodged by that person and
proof that a special security has been lodged to ensure
performance of
the undertakings arising from the
licences.

(9)

(10)

(11)

(12)

HAS ADOPTED THIS REGULATION:

Article 1

For products
falling within tariff headings CN 1701,
1806 10 30 and 1806 10 90, EC/OCT cumulation of origin as
referred to in Article 6 of Annex II to Decision 91/482/EEC
shall be permitted for a quantity of 4 848 tonnes of sugar
during the period of validity of this Regulation.

For products other than unprocessed sugar, the sugar content
of the imported product shall be taken into account for the
purposes of complying with that limit.

Article 2

Import of the products referred to in Article 1 shall be

1.
subject to the issue of an import licence.

2.
Articles 2 to 6 of Commission Regulation (EC) No 2553/
97 (4) on rules for issuing import licences for certain products
covered by CN codes 1701, 1702, 1703 and 1704 and quali-
fying as ACP/OCT originating products shall apply mutatis
mutandis.

However:

— licences shall bear the serial number 53.0001,

— licence applications may be for a maximum of 4 848

tonnes,

— Article 4(3) of Regulation (EC) No 2553/97 shall not apply;

— applications shall be lodged with the competent authorities
during the first five working day of each month, with the
exception of October 2000, when applications may be
lodged by 15 October 2000 at the latest,

— the single reducing coefficient shall be applied and the
lodging of new applications supsended where the quantity
covered by applications for import licences exceeds 4 848
tonnes during the period of application of this Regulation,

— import licences shall expire on the final day of the third

month following issue.

3.
Applications for import licences shall be accompanied by
a copy of the export licence, issued in accordance with Article
13 of Council Regulation (EC) No 2038/1999 (5) on the
common organisation of the markets in the sugar sector, for
the sugar in the products referred to in Article 1.

Article 3

(13)

In view of the impact of the imports, the safeguard
measures should be made to apply with immediate
effect,

This Regulation shall enter into force on the day of its publica-
tion in the Official Journal of the European Communities.

It shall apply from 1 October 2000 to 28 February 2001.

(1) Not yet published.
(2) OJ L 302, 19.10.1992, p. 1.
(3) OJ L 119, 7.5.1999, p. 1.

(4) OJ L 349, 19.12.1997, p. 26.
(5) OJ L 252, 25.9.1999, p. 1.

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This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 29 September 2000.

For the Commission

Franz FISCHLER

Member of the Commission